INTERNATIONAL TRADE MCQS

T.Y B.COM

SEMESTER - 5

INTERNATIONAL TRADE

(IT)

MCQS - OCTOBER 2013 

1) Intra - industry trade refers to the trade in ________ products.

a) Identical

b) Differentiated

c) Complementary 

d) Non-related 

2) __________ is a not a valid assumption if absolute & comparative advantage theory. 

a) Full employment

b) Product technology 

c) Process technology

d) Competitive technology

3) The commodity term of trade take into account

a) Quantity

b) Price Index

c) Ratio of price indices of imports to expots 

d) Ratio of price indices of exports to imports

4) New Trade Theory emphasizes on

a) Economies of scale

b) Imperfect competition

c) Differentiated Products

d) All of the above

5) Economic Welfare of a county will be maximized when commodity terms of trade is _________.

a) Optimised

b) Minimized

c) Constant

d) Maximised

6) When There is increase in both the export price index & import price index by the same percentage commodity terms of trade will __________.

a) Improve

b) Remain unchanged 

c) Deteriorate

d) None of the above

7) India should import _________ according to H.O. Theory.

a) Labour intensive goods

b) Capital intensive goods

c) Both (a) & (b)

d) Non of the above

8) With imposition of tariff country's terms of trade will ________.

a) Remain unchanged 

b) Improve

c) Deteriorate

d) Ether (b) & (c)

9) The shape of the offer curve is _________.

a) Strainght Line

b) Linear

c) Non-Linear

d) None of the above

10) The commodity in which a nation has the least absolute disadvantage represents its area of __________.

a) Comparative advantage

b) Comparative disadvantage

c) Absolute advantage

d) cannot say

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